Pula Secures $20M Funding to Expand Agricultural Insurance Access in Emerging Markets

Pula, an insurtech start-up headquartered in Kenya, has been steadfast since 2015 in its mission to improve access to agricultural insurance for small-holder farmers in emerging markets. By providing coverage against losses from pests, diseases, and extreme weather events like floods and droughts, Pula aims to safeguard the livelihoods of millions of farmers.

With a track record of supporting 15.4 million farmers across Africa, Asia, and Latin America, Pula is poised for further expansion following a successful $20 million Series B funding round. Led by global investment manager BlueOrchard through its InsuResilience strategy, the funding round also saw participation from the International Finance Corporation (IFC), the Bill & Melinda Gates Foundation, Hesabu Capital, and existing investors.

Pula’s CEO, Thomas Njeru, expressed excitement about the milestone, emphasizing the company’s vision to reach 100 million smallholder farmers globally. Njeru, who co-founded Pula with Rose Goslinga, highlighted the insurtech’s innovative approach of leveraging partnerships with over 100 organizations, including charitable groups, banks, governments, and agricultural input companies, to reach even the most remote farmers.

Rather than directly selling insurance to farmers, Pula embeds insurance into farm input costs or credit, making it accessible to a wider range of farmers. Each insurance product is tailored to meet the specific needs of clients and beneficiaries, leveraging Pula’s digital actuary platform to design products based on historical data and weather patterns.

Pula’s impact is evident through its collaborations with governments and organizations across various regions. In Zambia, the insurtech integrates insurance premiums with fertilizer and seed packages, benefiting farmers nationwide. Similarly, in Ethiopia, Pula partnered with the World Food Programme and local insurers to embed insurance in input voucher schemes, reaching over 122,000 farmers.

The positive impact of Pula’s agricultural insurance products is evident in increased investment, yields, and household savings among farmers. Research conducted by Pula indicates that insured farmers experience a 16% increase in farm investment, a 56% improvement in yields, and up to a 170% increase in household savings.

Looking ahead, Pula plans to introduce livestock insurance covers in countries like Kenya following a successful pilot program in Nigeria. Additionally, the company aims to expand its presence in Asia and Latin America, further solidifying its position as a key player in enhancing agricultural resilience in emerging markets.